Location access, battery drain in backkground

Phone: Google Pixel 7a, latest available android 17

I have enabled option "Disable when app is hidden"

Recently I have noticed poor battery life and later noticed that location is always on (blue dot in top right corner).
Locus was listed even weeks after last use. No recording or navigation/guidance running. I have to explicitly fully close it otherwise it is listed by system as accessing location and source of battery drain.